Can AUD/USD Repeat its V Shape Bounce off Support?

With AUD/USD testing support again to start 2017, the pair has seen buying continuing into today.

With the Aussie having tested this support zone back in May, we got a nice V shaped bounce, showing just how significant this level is. Remember, the more violent and instant the rejection from a level is, the more significant it is.

AUD/USD Daily:Click on chart to see a larger view.

On the other hand, the USDX surged higher today, pushing through resistance with the one marked H1 candle.

But as you can see, was rejected immediately, proving just how significant this USDX resistance level is.

USDX Hourly:Click on chart to see a larger view.

Just like yesterday’s USD/JPY setup, using these two charts in conjunction can be highly advantageous for a forex trader. Make sure you’re keeping them both on your MT4 watchlist.

Do you see opportunity trading AUD/USD? Open a forex account with the best Australian forex broker, Vantage FX and start using the USDX in your trading.

Dane Williams – @VantageFX

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